Debenhams are to confirm the closure of around 50 of its 165 stores over the next five years.
This is a dramatic increase on the 10 signalled before.
The high street chain will slash the value of its store leases and computer systems as it is due to reveal on-off costs of more than £500million.
Annual profits will be around £33million due to the accounting change, which is a slump from £95million the previous year.
Boss Sergio Bucher said: “It has been a tough year for retail in 2018 and our performance reflects that. We are taking decisive steps to strengthen Debenhams in a market that remains volatile and challenging.
“We are taking tough decisions on stores where financial performance is likely to deteriorate over time.”
Sales for the year slipped 1.8 percent to £2.9 billion.
But the store chief added: “Debenhams remains a strong and trusted brand with 19 million customers shopping with us over the past year.
Debenhams are to confirm the closure of around 50 of its 165 stores (Image: GETTY)
“With a strengthened balance sheet, we will focus investment behind our strategic priorities and ensure that Debenhams has a sustainable and profitable future.”
But attempts to close stores could be challenged by landlords.
Many have been hit by a number of restructuring within the retail sector this year.
The store has been weighed down by debts built up during its private equity-owned years.
The store has been weighed down by debts built up during its private equity-owned years (Image: GETTY)
A majority of the £500million write-off relates to a deal struck in 2003 when Debenhams during this era.
Debenhams has also suffered from cut-throat high street competition, as well as online.
Mr Bucher told BBC Radio 4’s Today programme: “I think it’s no surprise that customers have shifted online, they buy less in store, they buy more online.
“That is the issue we are addressing with our announcement today. We want to have fewer but better stores with a better shopping experience, we want to grow our online business and we want the whole of the organisation to be more profitable.
Sergio Bucher said Debenhams “remains strong” (Image: GETTY)
“This is a five-year programme. Most of the stores that we have in this plan are still profitable, they might stop being so as online develops. I can promise my 26,000 staff across the UK that we will work very hard to protect as many stores and as many jobs as we can.”
Shares of Debenhams over the past 12 months have plummeted more than 80 percent.
Rival House of Fraser also went into administration this summer.
It was bought by Sports Direct and Newcastle United owner Mike Ashley for £90million.
There is speculation that Mike Ashley is set to merge the store with the House of Fraser (Image: GETTY)
New Look, Carpetright and Mothercare are also set to close stores.
Labour published analysis that showed 100,000 Britons are working in the retail industry than there were in 2015.
Last year the high street lost 1,800 shops.
Companies blame the rise of Amazon and other online shopping sites for the decline.
Mr Bucher is a former Amazon executive and joined Debenhams in 2016 after being offered a pay package and shares with up to £3.85million.
Calls are being made for Chanellor Philip Hammond to fast-track a 3 percent tax on retailers such as Amazon, eBay and Good to “level the playing field” with UK business to help keep the high-street.
Debenhams is also the subject of takeover talk, with speculation building that Mike Ashley is set to merge it with his newly-acquired House of Fraser.
Mr Ashley has a 29.7 percent stake in Debenhams and is the largest shareholder.
Last year the high street lost 1,800 shops (Image: GETTY)
The high street giant store also unveiled a new store last month in an attempt to revive its business.
Despite the economic woes, the new outlet in Watford, Hertfordshire has so far received a positive response from customers.